Tuesday, January 07, 2020

Wednesday Watch

Night Trading 
  • Asian equity indices are -2.0% to -1.0% on average.
  • Asia Ex-Japan Investment Grade CDS Index 58.75 +2.75 basis points.
  • China Sovereign CDS 34.5  +1.25 basis points.
  • Bloomberg Emerging Markets Currency Index  66.25 -.16%.
  • FTSE 100 futures -1.0%.
  • S&P 500 futures -1.5%.
  • NASDAQ 100 futures -1.8%.

Earnings of Note 
Company/Estimate
Before the Open:
  • (STZ)/1.85
  • (GBX)/.43
  • (LEN)/1.89
  • (SCHN)/-.16
  • (WBA)/1.41
After the Close:
  • (BBBY)/.03
Economic Releases  
8:15 am EST
  • The ADP Employment Change for Dec. is estimated to rise to 160K versus 67K in Nov.
10:30 am EST
  • Bloomberg consensus estimates call for a weekly crude oil inventory decline of -3,185,000 barrels versus a -11,463,000 barrel decline the prior week. Gasoline supplies are estimated to rise by +2,700,780 barrels versus a +3,212,000 barrel gain the prior week. Distillate inventories are estimated to rise by +3,956,780 barrels versus a +8,776,000 barrel gain the prior week. Finally, Refinery Utilization is estimated to rise by +.06% versus a +1.2% gain prior.
3:00 pm EST
  • Consumer Credit for Nov. is estimated to fall to $16.0B versus $18.91B in Oct.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Fed's Brainard speaking, German Factory Orders report, $24B 10Y T-Note auction, weekly MBA Mortgage Applications report and the (COST) Dec. sales results could also impact trading today.
Market Hours
Normal:
  • 9:30 am - 4:00 pm EST
BOTTOM LINE: Asian indices are lower, weighed down by consumer and financial shares in the region. I expect US stocks to open lower and to maintain losses into the afternoon. The Portfolio is 75% net long heading into the day.

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